TSX Venture Symbol: CFL.UN
CALGARY, April 20 /CNW/ - Mr. Wayne Wadley, president of CERF GP Corp., the general partner of Canadian Equipment Rental Fund Limited Partnership ("CERF"), is pleased to announce the results for the year ended December 31, 2008.
Highlights of the year ended December 31, 2008 were:
- Increased our revenues by 6% to $16,560,810 in 2008 from $15,687,978
in 2007.
- Net income also increased 6% to $3,338,808 from $3,137,645 in 2007.
- Earnings before interest, income taxes, depreciation, amortization
and unit based compensation ("EBITDAC") increased by 4% to $7,398,640
from $7,025,318 in 2007.
- Net income per unit for 2008 was $0.60 per unit basic unchanged from
2007.
- Quarterly distributions of $0.16 per unit were declared, $0.64 per
unit for the year.
Mr. Wadley comments, "Our board and management team remain optimistic for the upcoming year. The first quarter of 2008 was the best quarter that we have ever experienced. Following that however the multiple residential housing markets declined which had a negative effect on our 2nd and 3rd quarters. While the residential housing construction has not yet improved we have seen increased activity, beginning towards the end of the third quarter of 2008 in commercial and infrastructure construction which helped replace demand for our equipment previously generated by the residential construction contractors.
During these economic times, we have taken steps to preserve our working capital and control discretionary costs. We have also reduced the distribution to $0.12 per quarter effective March 31, 2009. The Board and management have determined that until the economy shows renewed strength, it would be wise to retain cash in the operations to maintain or reduce our current debt levels, provide a reserve in case of further economic declines in the future or to take advantage of opportunities that may arise. Our capital expenditures will also be reduced to match demand and preserve cash. We continue to have a very young fleet as we have aggressively expanded our equipment base to meet customer demand since 2006. This gives us the luxury to run our fleet efficiently while preserving revenues without the need for significant re-occurring capital outlay. Our debt position continues to remain very conservative and our lenders very supportive of our business. These factors put us in good stead for the future."
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances, cash flows or the ability to pay distributions to be materially different from the results, performances, cash flow or the ability to pay distributions expressed or implied by such forward looking statements.
Canadian Equipment Rental Fund Limited Partnership
Operating as 4-Way Equipment Rentals
Balance Sheets
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December 31, December 31,
2008 2007
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Assets
Current assets:
Cash $ 227,425 $ 254,833
Accounts receivable 3,870,472 4,874,826
Inventory 796,329 398,492
Prepaid expense 118,242 64,289
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5,012,468 5,592,440
Property and equipment 14,449,882 13,297,555
Prepaid rent 88,200 88,200
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$19,550,550 $18,978,195
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Liabilities and Partners' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 1,669,591 $ 2,160,026
Distributions payable 929,476 861,016
Note payable 300,000 300,000
Current portion of long-term debt 1,461,502 1,627,525
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4,360,569 4,948,567
Long-term debt 5,640,673 4,420,689
Future income tax 594,740 572,515
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10,595,982 9,941,771
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Partners' equity:
Limited Partnership units 8,272,782 8,125,047
Unit purchase loans receivable (487,877) (530,740)
Contributed surplus 469,197 398,724
Retained earnings 700,466 1,043,393
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8,954,568 9,036,424
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$19,550,550 $18,978,195
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Statements of Operations
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Year ended Year ended
December 31, December 31,
2008 2007
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Revenues $16,560,810 $15,687,978
Expenses:
General and administrative 1,057,872 875,216
Interest on long term debt 407,197 334,877
Operating 8,194,859 7,847,973
Unit based compensation 109,664 267,244
Amortization of property and equipment 3,430,185 2,652,508
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13,199,777 11,977,818
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Income before income taxes 3,361,033 3,710,160
Future income taxes 22,225 572,515
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Net income for the year 3,338,808 3,137,645
Other comprehensive income - -
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Comprehensive net income for the year 3,338,808 3,137,645
Retained earnings, beginning of year 1,043,393 1,387,807
Partner distributions declared (3,681,735) (3,482,059)
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Retained earnings, end of year $ 700,466 $ 1,043,393
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Net income per unit
Basic $0.60 $0.60
Diluted $0.56 $0.57
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CERF is an Alberta limited partnership engaged in the rental, sale and
service of industrial and construction equipment. CERF trades on the TSX
Venture Exchange under the symbol "CFL.UN" and currently has 5,817,562 units
issued and outstanding."
Full audited financial statements and notes thereto as well as management
discussion and analysis are available on the SEDAR website at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00022335E